Expert panel to thrash out roadmap for COVID-19 real-world solutions
Mike Brennan, president of commercial solutions at CRC Group and webinar panel member, offers a sneak preview of the big topics up for debate in the May 5 Intelligent Insurer webinar.
What will the big talking points be for the webinar panel?
Mike Brennan (MB):
So much of the focus has been on business interruption (BI) coverage - and rightly so.
Ultimately, how the courts and public policy address BI coverage is critical to our industry. The basic principles of insurance and risk pooling break down when a large segment of the economy is impacted across the globe simultaneously.
Aside from a consensus that the insurance industry alone cannot be the only means to respond to the losses associated with the pandemic, I think an interesting part of our discussion will pivot around the best methods to address this crisis and others like it. The discussion around a public-private partnership, like the Terrorism Risk Insurance Act (TRIA) is one idea. I’m really interested to hear Ken Crerar’s, CEO at the Council of Insurance Agents & Brokers (CIAB), perspective on this because they have done a terrific job keeping their finger on the pulse with what is happening in Washington DC and each of the individual states.
What else are you interested in discussing at the webinar?
MB: The impact of Covid-19 is so far-reaching, affecting so many, in so many different ways. Related to the BI topic, there are a lot of businesses across the country experiencing a significant decline in their sales due to the pandemic. Many of these clients are looking for premium adjustments to match their new reality. It will be interesting to discuss how the marketplace is currently responding and if carriers’ responses will meet the clients’ expectations. You can certainly empathise with both sides, which makes this topic so much more challenging.
It will also be interesting to discuss how environmental insurance policies may come into play, as we begin to see COVID-19 related claims in the environmental segment. Pandemics are not new to environmental carriers and I suspect those carriers may bring a unique approach to some of these claims.
Management liability is another area that will likely be impacted by the coronavirus. The Securities and Exchange Commission advised companies to disclose information related to COVID-19, which could have implications on public D&O claims. With so many organisations moving to a work-from-home situation, cyber attacks have more than tripled. It will be interesting to discuss with our panel how this may change the way we view cyber risks going forward.
Why is a roadmap for events like COVID-19 so crucial?
MB: If we don’t effectively think through the concept of pandemic-like events going forward, we may jeopardise the liquidity of the entire insurance industry. A catastrophe falling on one industry’s shoulders isn’t realistic, but insurance can be an effective mechanism to administer solutions. I think there are going to be difficult times ahead in terms of claims controversies and litigation, but ultimately I believe we can learn a lot from this crisis and we can work to have a roadmap for future events.
*If you can’t join live, you’ll automatically receive the recording if you register
